GBP/JPY Price Forecast – British pound bounces into the weekend

The British pound rallied a bit during the trading session on Friday against the Japanese yen as we are heading into the weekend. It makes sense, considering that there will be a certain amount of short covering going into the weekend as we don’t have any idea as what the next announcement or tweet will be. We are starting to reach towards a large, round, psychologically significant figure, and the form of the ¥130 level. We also have the 20 day EMA reaching towards that area, so at this point I think that it’s only a matter time that exhaustion comes back into the market.

GBP/JPY  Video 19.08.19

The pair has been negative for quite some time, considering that the risk appetite of traders around the world continues to be stifled by the US/China trade situation, and of course the Brexit which seems to be never-ending. There’s just simply far too much in the way of negativity and uncertainty out there to think that the British pound is going to continue to rally for a significant amount of time. Because of this, the first signs of exhaustion I’m willing to sell this pair and I do think that we continue to go much lower, perhaps down to the ¥125 level. Ultimately, I have no interest in buying this pair until we get some type of resolution to both of those major issues out there. In other words, it’s only a matter of time before we start selling again.

Please let us know what you think in the comments below